- Indian refiners use yuan to pay for Iranian oil
- Transactions routed via ICICI Bank, says report
- Govt says purchases are fully compliant with rules
- Imports rise amid Strait of Hormuz disruption
GG News Bureau
New Delhi, 18th April: Indian refiners are settling payments for limited Iranian crude purchases in Chinese yuan under a temporary US sanctions waiver, according to a Reuters report, with transactions routed through ICICI Bank.
The government said the transactions are compliant with existing rules, stressing that energy security remains the top priority.
The purchases follow sanctions relief granted by the United States last month, allowing countries to buy Russian and Iranian oil to stabilise global energy markets amid ongoing tensions involving Iran.
However, the waiver for Iranian crude is set to expire soon, with US authorities indicating it may not be extended.
India recently made its first Iranian crude purchase in seven years, with Indian Oil Corporation buying around two million barrels valued at approximately $200 million.
Several other vessels carrying Iranian oil have also been permitted to dock at Indian ports.
According to the report, payments are being processed in Chinese yuan through banking channels, reflecting evolving trade mechanisms amid sanctions-related constraints.
A senior government official clarified that such arrangements are permissible.
“Meeting our domestic need is the important thing. Our oil marketing companies are operating within the rules,” said Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas.
The ongoing geopolitical tensions have disrupted key shipping routes, particularly the Strait of Hormuz, through which nearly one-fifth of global oil supply passes.
Rising crude and gas prices have impacted global markets, though India has managed relatively stable supplies compared to other Asia-Pacific economies.
